TD Securities: If the Federal Reserve cautiously cuts interest rates, the dollar may rise

ChainCatcher news, according to Jinshi reports, a strategist at TD Securities stated in a report that if the Federal Reserve lowers interest rates by 25 basis points next week but takes a cautious stance on further rate cuts, the dollar should rise.

They pointed out that the market expects consecutive rate cuts, but the Federal Reserve may temper these expectations, emphasizing potential inflation risks. Powell may signal that the Federal Reserve is not on a predetermined path of rate cuts and will continue to monitor upcoming data to assess risks. This would boost the dollar, but in the long run, the dollar is still expected to decline, and any rebound would be a good opportunity to sell.